£161m spent on universal credit IT could be written off

The Department for Work & Pensions (DWP) has admitted that £161m spent on IT for universal credit could be written off.

During a Public Accounts Committee session, Dr Norma Wood, interim director general of the Major Projects Authority, said that much of the £303 invested in IT so far was "not fit for purpose".

In response to questions about how much of the spending could be written off, Dr Wood admitted that it would be "a significant chunk" and could be at least £200m, although she added that prospects for reusing IT may have increased since the programme was reviewed and ‘reset’.

However, DWP finance director Mike Driver rejected the suggestion that £200m would have to be written off, saying that £161m was his ‘best assessment’ of likely total losses.

He explained, "When we work through the detail of this, we will be able to determine whether there is a future use of these assets", adding that the situation will be clarified further once internal reviews and audits have concluded.

Robert Devereux, permanent secretary at the DWP, also played down claims of a significant write-off, saying "the majority of stuff we have paid for is currently in use…and the things I’m actually using are working."

Despite some differences on figures, Wood, Devereux and Howard Shiplee (who was appointed in May 2013 to lead the delivery of universal credit), all agreed that the programme can be delivered by 2017.

Wood said, "I believe it is feasible to deliver this in the original timescales [by 2017]", while Devereux added, "My assessment is that if Dr Wood and Howard [Shiplee] say 2017 is possible I agree."

In response to a critical NAO report published last week, during both his media appearances and in response to an Urgent Question in the House of Commons, Secretary of State for Work & Pensions Iain Duncan Smith repeatedly insisted that the reform would be delivered ‘in time and on budget’.